IT’S only a matter of time before southern processors start to migrate north again to source slaughter cattle out of Queensland and northern NSW, with some big price differentials emerging this past week on slaughter-type cows and ox in both direct consignment and saleyard channels.

Last year the trend was particularly strong, as the supply of slaughter cows and heavy steers in the south was modest, with Victorian and southern NSW processors operating in Queensland until well into October.

This week some big 50-60c/kg gaps have opened up in slaughter cows between southern states and Queensland, incentivising southerners to head north and pay the 25-30c/kg freight bill to get them home.

There’s been little sign yet of active purchasing at recent Queensland sales like Roma and Dalby, but it’s only a matter of time, market watchers told Beef Central this morning.

Last year, southern processors were active in saleyards, out-of-the-paddock, and in some cases offering over-the-scales liveweight rates out of northern centres like Longreach, Winton and Morven.

While Queensland direct consignment quotes were mostly unchanged this week, there were some big jumps seen in some grids from southern NSW across into eastern parts of South Australia.

Typical quotes seen this morning from competitive processors in southern Queensland have offers of 560c/kg on heavy cows and 630c/kg on four-tooth heavy grass ox (some grids offering an extra 10c for HGP-free). Central Queensland sites are typically 10c/kg behind those rates.

Further south, grids seen from processors in southern NSW have offers this morning of 590c (580c) on heavy cows and 670c (640c) on grass ox, with the eastern parts of South Australia showing 610c (590c) and 660c (640c). Those quotes range from +10c/kg to +30c/kg on last week.

Limited numbers of good killable cattle is the primary reason, as highlighted in the Monday/Tuesday saleyards summaries listed below.

“There’s also some variance in quality being seen in Queensland saleyards over the past week, but the point is, there is more of the better cattle, proportionately, than there is in the south,” one large processor cattle buyer said this morning.

The return of some hot weather has seen a lift in cattle movements in Queensland over the past week, even though the industry is still almost a fortnight away from March. Processors are also starting to factor in the series of three (four in some states) consecutive short operating weeks coming up from mid-April, covering Easter, ANZAC Day and Labour Day holidays.

Forward pricing on 100-day grainfed ox for June delivery is around 700c/kg.

Saleyards channel

The saleyards channel early this week generally showed mixed quality evident in slaughter types, with cow prices rising in most centres.

Gunnedah sale this morning yarded 1895, up about 800 on last week’s rain-reduced offering. Cows made up one third of the numbers. Processors seeking females were well catered for however heavy steers supplies were limited. Strong demand for females saw well finished grown heifers to process sell to a dearer trend. The large increase in supply showed little sign of satisfying processor requirements in the cow market.This resulted in dearer trends through all classes. The best of the well-finished heavyweights improved by as much as 35c/kg. Mediumweight also experienced strong gains.

Wodonga sale this morning yarded 1039 head, a modest decline on last week. The highlight was the cow market where prices lifted significantly. Heavy cows jumped 38c to average 330c/kg, with leaner grades less than 520kg improving 27c. Heavy steers sold 9c dearer to average 336c while bullocks gained 6c to average 364c.

A preliminary Roma store sale report (full details tomorrow) showed a yarding of 7468 head, up more than 2100 on last week’s rain-impacted offering. While cows were yet to sell at the time the report was published, other lines were mostly dearer, with grown steers 400-500kg averaging 327c and bullocks +600kg 345c/kg.

Wagga sale yesterday yarded 5050, down 350 on the previous week. Heavy steers and bullocks were in short supply, pushing prices higher. Processor-type heavy steers sold from 330-372c, while bullocks sold from 355-392. Heavy cows saw a 12c/kg lift, selling from 290-316c, with leaner types lifting 28c, ranging from 270-310c.

• There was no NLRS weekly slaughter report available by the time this item was published. A summary will be added here when it becomes available.